Celadon Group’s Profit Rises 21%
Celadon Group Inc. reported fiscal first-quarter net income increased 21.2% as revenue rose.
The company earned $8 million, or 34 cents per share, from $6.6 million, or 28 cents, a year earlier.
Revenue for the quarter ended June 30 rose 10.5% to $193.4 million.
“We continue to work on driver recruitment and retention as the market remains challenging for qualified drivers. As a result, our costs related to driver training, advertising for experienced drivers, and other recruitment and retention efforts have continued to increase,” CEO Paul Will said in a statement.
“This, along with economic and safety regulatory issues, has resulted in more constrained truckload capacity for shippers. Their understanding and willingness to adjust rates upward reflects the collective capacity and service challenges currently facing the industry,” he added.
The company recently acquired A&S Services Group, a regional for-hire and dedicated truckload carrier, for $55 million. Based in New Freedom, Pennsylvania, A&S provides dry van transportation services in the Mid-Atlantic and Northeast.
Celadon said it assumed $31.8 million in operating leases that it will capitalize and record on its balance sheet for about $74.9 million of tangible net assets.
Celadon Group ranks No. 44 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers.
